Russian law makers have decided to put off the adoption of a bill concerning cryptocurrency mining until December 2023. The document is set to include rules for the sale and mining of digital assets, and is a response to the sanctions that have blocked the country from accessing global markets.
Russia’s new crypto mining legislation is still being finalized
An announcement was made on the news portal of the State Duma, the lower house of the Russian Parliament, that the bill to legalize crypto mining will be reviewed and voted on by the end of 2023. The head of the Financial Market Committee, Anatoly Aksakov, stated that further approval was needed in order to reconcile the positions of the various regulators.
The bill was initially submitted to the Duma in November, proposing amendments to the existing law “On Digital Financial Assets”. The law was put into effect in January 2021, but only partially regulated activities related to cryptocurrencies.
Mining, which Russia has some advantages for, such as low-cost electricity and a cool environment, has grown as an industry. This has made it an extra source of income for many hobby miners in energy-rich areas of the country.
Throughout 2021, the Russian government has been deliberating on how to expand current regulatory frameworks to permit crypto operations. Though many officials oppose allowing Bitcoin and other digital currencies to freely circulate inside the country, there has been significant backing for their use in cross-border payments, despite the sanctions from the Ukraine conflict.
The mining bill was initially turned down by the Duma’s Legal Department, who demanded that it be coordinated with the Bank of Russia. The central bank, which had a hostile attitude towards cryptocurrencies, later on agreed to support the document, but under the condition that mined coins should be sold abroad or exchanged for fiat currency according to specific legal regimes.
In the middle of December, Aksakov’s committee evaluated the bill and suggested it pass the first reading before the end of the fall session. He also said that the establishment of “experimental legal regimes” proposed by the Bank of Russia should be regulated by separate bills which must also be adopted this year.
Do you think these measures will hasten the adoption of the crypto mining bill by 2023? Please share your thoughts in the comments section below.
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